Web Seminar

1. Today revenue management is used for most hotels because we realize how important it is and as for reputation management because we realize that there is an important direct connexion between reviews and demand. Reviews are used to make better revenue management
 

As RJ Friedlander said, the tool is to drive revenue growth by increasing guest satisfaction

Review pro agrees that it is very important to understand and analyze guest satisfaction from all sources and be able to track it to improve revenue management to direct and indirect competitors.

2. What is the relationship between QGI + revenue gains

Chris Anderson explained the importance of the impact of content of social media upon hotel performance:

Consumer panel , Impact of users reviews, Impact at point of purchasing, Price, location, stars and then reviews. And how to quantify this attribute:

Coefficient are referred to the odds ratio so the individual probability for purchasing it or not. We can increase the odds of being booked by 13,5% and can increase price by 8% and still maintain probability of purchase per market share.

Relationship between online reputation and hotel performance is the second point :ADR average daily rate, Occupancy and RevPAR revenue per available room, information coming from competition, the performance of competiting hotels and our hotel interest.  

4 indices to estimate impact of online reputation:

Demand (Occupancy index)

Pricing Power (ADR index)

Performance (RevPAR Index)

There is a pretty dramatic impact btw GRI and performance

 

3.What person/position, in the hotel, is responsible for analysis of pricing changes based on quality index changes

 As Victoria Edward mentioned we today have a new Synergy :

Demand creation – marketing function

Demand capture - sales

Demand management – revenue management

It shouldn’t be taking for granted and find a good way to optimize the revenue management

As overall impact of social media and more specific review sites drive purchase decisions our weaknesses are further exposed. Weaknesses are very negativ as strategic pricing, demand forecasting and business mix management. There was no transparency few years ago and we also come now to predictable windows

Internal versus External basis, hotel focus internal year over year and budget, competitive set define by the owners but we should based on consume behavior on levels on engagement for example.

So revenue manager as to adapt to be successful.

4. What new measurement will be used to measure quality scores to revenue performance

 

Key performance indicators:

Traditional:

-      Market penetration index (MPI) = occupancy index

-      Average rate Index ( ARI)

-      Revenue generator Index (RGI) = revPAR Index

New:

-      Quality penetration index ( QPI)

 

Understanding the revenue generation index to driving our profitability higher

How can help hotels determining the pricing purchase with these opportunities

Set up : targets and objectives on RGI and MPI that help to identify opportunities we have.

Competitive Quality Index (CQI) with list of competitors and measure of market share guest satisfaction

. Role of  revenue manager must become even more strategic and analytical

. Review metrics must be integrated as a key component of revenue management strategy

. To maximize revenue and stay ahead of completion compare your review index with rate, occupancy and revPAR indexes to find optimal rates and positioning in the market place

 

Value proposition as to be based on customer perception rather than our own perception

Quality and value of index become the driving to pricing decisions

1. Compare variance month over month

2. GRI to pricing strategy during the same period

3.Compare STR index balance to GRI

4.Look at your GRI versus comp set GRI

5.Compare your forecast accurancy with GRI variance

6.Drill down to see how your rooms score

7.Look at all these metrics in terms of forward looking indicators such as shopping tolls and predictive forecast sites

5. Is ORM the Revenue Maximization of the future? Yes - why, no - why not

As they all mentioned, online reputation became so important because today everything is focused on online activities.

We have to make sure we share these information in term of guest experience, quality well managed by revenue manager

Market is so challenging, negotiation became so tough so it is very challenging to compete so we need information to be confident for a good ORM and a potential increase.